Maybe you hired an investment broker from a professional investment firm to manage your wealth in order to set you up for greater financial freedom in the future. Perhaps you entrusted a company or professional with the funds intended to provide pension or retirement benefits for the staff at your company.
You place a significant amount of trust in a professional when you ask them to manage financial resources for you. You expect that the investment professional handling your resources will exercise appropriate levels of care when doing so and that they will always put your best interest first when making critical decisions about how to handle or invest your assets.
Unfortunately, some people who work in securities and investments will prioritize their own income over the needs of their clients. Other times, a lack of diligence and care could result in bad decisions that diminish or consume your invested assets. In some situations, you can take action against a financial professional who makes mistakes or puts their profit ahead of your protection.
Financial professionals have a fiduciary duty to their clients
Entering a contract with a professional financial advisor or investment broker usually puts them in a position of fiduciary duty to you as their client. Under the law, a fiduciary duty is the highest level of duty that a professional can have to another person. It requires that the individual that you placed in a position of trust put your interests first when making decisions related to your assets.
Most investment professionals take this duty seriously and will carefully research investment decisions before moving forward with them. They will seek to help their clients earn a return on their investment and increase their wealth instead of diminishing it. Market downturns and business failures are issues a professional might not be able to predict. Not all losses are preventable, but others are with proper research and careful investment practices.
If you believe that your financial advisor or investment professional violated their fiduciary duty to you by making a trade for their own profit rather than the betterment of your assets or if they did not exercise appropriate care when managing your assets, you may be able to take action against them for the financial impact of their lack of care.